Question-and-Answer Session
Operator
(Operator instructions) We can take our first question from the side of Arnie Ursaner of CJS Securities. Please go ahead.
Barclay Simpson
Hi, Arnie.
Arnie Ursaner – CJS Securities
Bob, good morning to you. First question I had related to your gross margins. Obviously these are unprecedented low levels for you as a company. You went into the quarter; you had some relatively high cost lingering steel inventory. And I know your plans’ under absorption has been a major factor. I know you have been your plants on much shorter hours and things like that. Without specific quantification, can you give us a feel for how much of the margin degradation percentage wise has been caused by each of those two factors?
Barclay Simpson
Mike, you want to take that?
Mike Herbert
The primary reason for the margin degradation is the plants. And those have just started to get – we started to increase production just slightly in those. So those should come up as we go through the year.
Arnie Ursaner – CJS Securities
Second question. And what is your sense of – the 25 or so margin you showed this quarter, how should we think about that for the balance of the year?
Mike Herbert
That’s a really difficult question. But my personal best guess, and that is all it is, is probably around 28%.
Arnie Ursaner – CJS Securities
Second question, it’s a little more strategic or global for your Barc. You made some fairly management change announcements earlier in the quarter, and I know you’ve got your Analyst Day coming up shortly. Can you perhaps give your shareholders some sense of the goals you hope to accomplish with these change and tell us about the roles these people are expected to play going forward?
Barclay Simpson
Well, I think it broadens the knowledge and experience of some of our very top people and that’s got to be a plus. And also of course I think it was great that Mike agreed to take the job of running international because that is a major part of the future of this company. And we need the best people there. And I think it was great that Karen agreed to take over his job too. It just broadens both of them immensely.
Arnie Ursaner – CJS Securities
You see it affecting the operations of the company in any material way, or your communication with street in any material way?
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